Agenda item

a)    Housing Revenue Account Estimates for 2019/20 to 2023/24 and Proposed Outturn for 2018/19

 

b)    Capital Strategy and Capital Programme 2019/20 to 2023/24

 

c)     Treasury Management Strategy Statement 2019/20

 

d)    Statement of the Chief Financial Officer on Reserves, Robustness of Estimates and Affordability and Prudence of Capital Investments

 

e)    Council Tax Reduction Scheme 2019/20

 

f)      Revenue Budget 2019/20 and Medium Term Financial Strategy 2019/20 to 2023/24

 

g)    Liberal Democrats Budget Amendment Proposals 2019/20

 

And if thought fit, pass the following resolutions:

 

1. That it be noted that on 17 December 2018, the following amounts were approved by the Cabinet as the Council's Council Tax Base for the financial year 2019/20:

 

a)    56,693 for the whole Council area [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")

 

b)    8,627 for dwellings in the Saddleworth Parish area to which a Parish precept relates

 

c)     5,438 for dwellings in the Shaw and Crompton Parish area to which a Parish precept relates

 

2. That the Council Meeting approve the Council Tax Requirement for the Council’s own purposes for 2019/20 (excluding Parish precepts) as being £92,089,841

 

3. That the following amounts be calculated by the Council for the year 2019/20 in accordance with sections 31A to 36 of the Local Government Finance Act 1992:

a) £580,552,436	being the aggregate of the amounts which the Council estimates for the items set out in section 31A(2) of the Act taking into account any Precepts for the Saddleworth and Shaw & Crompton Parish areas
b) £488,184,981	being the aggregate of the amounts which the Council estimates for the items set out in section 31A(3) of the Act.
c) £92,367,455	being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with section 31A(4) of the Act, as its Council Tax Requirement for the year (Item R in the formula in Section 31B of the Act).
d) £1,629.26	being the amount at 3(c) above, all divided by Item T (1(a) above), calculated by the Council, in accordance with section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).
e) £277,614	being the aggregate amount of all special items referred to in section 34(1) of the Act, being the Saddleworth and Shaw & Crompton Parish precepts.
f) £1,624.36	being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by the amount by Item T (1(a) above), calculated by the Council, in accordance with section 34(2) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special item relates.
g) £1,646.12	Saddleworth Parish area being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned at 3(e) above divided by the amount at 1(b) above, calculated by the Council, in accordance with section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate.
h) £1,640.89	Shaw & Crompton Parish area being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items relating to dwellings in those parts of the Council's area mentioned at 3(e) above divided by the amount at 1(c) above, calculated by the Council, in accordance with section 34(3) of the Act, as the basic amounts of its council tax for the year for dwellings in those parts of its area to which one or more special items relate.

4. That it be noted that for the year 2019/20 the Mayoral Police and Crime Commissioner Precept and the Mayoral General Precept (including Fire Services) for Greater Manchester have been issued to the Council in accordance with section 40 of the Local Government Finance Act 1992, for each category of dwellings in the Council's area as indicated in the table below.

 

5. That the Council, in accordance with sections 30 to 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2019/20 for each part of its area and for each of the categories of dwellings.

 

Authority/Parish	Council Tax Bands (£)
	A	B	C	D	E	F	G	H
Oldham Council	1,082.90	1,263.39	1,443.87	1,624.36	1,985.32	2,346.29	2,707.26	3,248.72
Mayoral Police and Crime Commissioner Precept	132.20	154.23	176.27	198.30	242.37	286.43	330.50	396.60
Mayoral General Precept (including Fire Services)	51.29	59.84	68.39	76.95	94.05	111.15	128.24	153.90
Saddleworth Parish Precept	14.50	16.92	19.34	21.76	26.59	31.43	36.26	43.52
Shaw and Crompton Parish Precept	11.02	12.85	14.69	16.53	20.20	23.87	27.55	33.06

 

AGGREGATE OF COUNCIL TAX REQUIREMENTS

Authority/Parish	Council Tax Bands (£)
	A	B	C	D	E	F	G	H
Saddleworth Parish Area	1,280.89	1,494.38	1,707.87	1,921.37	2,348.33	2,775.30	3,202.26	3,842.74
Shaw & Crompton Parish Area	1,277.41	1,490.31	1,703.22	1,916.14	2,341.94	2,767.74	3,193.55	3,832.28
All other parts of the Council’s Area	1,266.39	1,477.46	1,688.53	1,899.61	2,321.74	2,743.87	3,166.00	3,799.22

 

NOTE: The meeting of the Council will conclude 3 hours and 30 minutes after the commencement of the meeting.

 

 

Carolyn Wilkins

Chief Executive

 

The Mayor requested and it was RESOLVED that Council Procedure 10.7 (Rules of Debate) be suspended to enable the Leader of the Council to exceed the time limit for his contribution in moving the Administration Budget to 15 minutes with a 30 second extension and the Leader of the Main Opposition Group in moving the Main Opposition Budget, a time limit of 10 minutes with a 30 second extension.  All other speakers would be limited to 4 minutes with a 30 second extension.

 

The Mayor informed members that regulations had been implemented which required recorded votes on specific decisions at the Budget Council meeting.  Members would be advised when a recorded vote was required.

 

Prior to the consideration of the Budget Proposals, the Mayor asked the Council to note the draft minutes of the Cabinet meeting held on 11^th February 2019.

 

On a vote being taken, the recommendation was CARRIED UNANIMOUSLY.

 

RESOLVED that the minutes of the Cabinet meeting held on 11^th February 2019 be noted.

 

a)         Housing Revenue Account Estimates for 2019/20 to 2023/24 and Proposed Outturn for 2018/19

 

            Councillor Roberts MOVED and Councillor Jabbar SECONDED a joint which report which set out the Housing Revenue Account (HRA) detailed budget for 2019/20 and strategic estimates for the four years 2020/21 through to 2023/24 and the latest outturn estimate for 2018/19.  The report also set out the recommended dwelling and non-dwelling rents and service charge increases to be applied from April 2019.

            It was reported that after taking all relevant issues into account, the projected financial position for 2018/19 was estimated to be a £2.506m positive variance when compared to the original budget forecast for 2018/19 which had been approved at the February 2018 Budget Council meeting.  The majority of the variance was attributable to the re-profiling of HRA funded capital schemes in to later years due to revisions to planned spending profiles.  The financial position for 2019/20 showed an estimated HRA closing balance of £19.477m which was considered to be sufficient to meet future operational commitments and the potential financial pressures identified in the risk assessment.  The 2019/20 position had been presented after allowing for an increase in rent of 3.4%.  It was noted that the Government had already advised that PFI properties were exempt from the Central Government’s 1% Social Rent Reduction Programme.  As all Oldham housing stock was contained within two PFI schemes, then the 2019/20 budget would follow historic rent setting guidance of CPI plus 1%, which resulted in an increase of 3.4% (CPI was taken as at September 2018).

 

            The HRA detailed report had been presented to Overview and Scrutiny Performance and Value For Money Select Committee on 24 January 2019.  The Select Committee was content to accept the recommendations in the report but requested a revision so that the Council would, where possible, assist tenants in receipt of Universal Credit impacted by the 53-week rent year.  This was included in the report and commended to Cabinet for approval.  Cabinet duly considered the report at its meeting on 11^th February 2019 and commended the report to Council.

 

            No members spoke on this item.

 

RESOLVED that:

 

1.         The Forecast HRA outturn for 2018/19, as outlined at Appendix A of the report, be approved.

2.         The proposed HRA budget for 2019/20, as outlined at Appendix B of the report, be approved.

3.         The strategic estimates for 2019/20 to 2023/24, as outlined at Appendix D of the report, be approved.

4.         The proposed increase to dwelling rents for all properties of 3.4% be approved.

5.         The proposed increase to non-dwelling rents as per individual contracts be approved.

6.         The proposal that PFI 2 and 4 service charges are unchanged be approved.

7.         The proposal to set PFI 2 concierge charges inline with actual costs for full recovery be approved.

8.         The proposal that the Council takes whatever action within its powers to support tenants in receipt of Universal Credit who are impacted by there being there being 53 rent weeks in 2019/20 be approved.

 

b)         Capital Strategy and Capital Programme 2019/20 to 2023/24

 

            Councillor Jabbar MOVED and Councillor Fielding SECONDED a report of the Director of Finance which set out the Capital Strategy for 2019/20 to 2023/24 and thereby the proposed 2019/20 capital programme which included identified capital investment priorities, together with the indicative capital programme for 2020/21 to 2023/24, having regard to the resources available over the life of the programme.

            Capital Strategy

            The Council’s Capital Strategy and capital programme were set out over a five-year timeframe.  The proposed Capital Strategy and programme for 2019/20 to 2023/24 took the essential elements of the 2018/22 and previous years’ strategies and programmes and moved them forward in the context of the financial and political environment for 2019/20.  The strategy included a longer-term vision, a forward look at those projects that are likely to run beyond the five year strategy and programme period or be initiated subsequently.  This covered a timeframe for the 10 years from 2024/25 to 2033/34.

            In 2017 the Chartered Institute of Public Finance & Accountancy (CIPFA) issued revised Prudential and Treasury Management Codes whose main requirement was that for 2019/20 all Local Authorities had to prepare an additional report, a capital strategy report.  Whilst the Council had traditionally prepared a Capital Strategy, the presentation had been changed to ensure compliance with the new guidance.  The strategy was therefore presented so that it provided:

·                     A high-level long-term overview of how capital expenditure, capital financing and treasury management activity contributed to the provision of services.

·                     An overview of how the associated risk was managed.

·                     The implications for future financial sustainability.

            The strategy was prepared in 15 sections and ensured that all Council members were presented with the overall long-term capital investment policy objectives and resulting Capital Strategy requirements, governance procedures and risk appetite.  The strategy also advised that the Council was proposing to utilise the flexibility provided by the Ministry of Housing, Communities and Local Government (MHCLG) to use capital receipts to fund the revenue cost of transformation.  The 2019.20 revenue budget would rely on up to £3m of such funding from capital receipts.

            Capital Programme 2018/19 to 2022/23

The 2018/19 Month 8 Capital Monitoring position was approved by Cabinet on 11^th February 2019 and the projections included in that report were a key determinant of the 2019/20 programme.  As many schemes spanned more than one year, the anticipated level of reprofiling between years set the underlying position.

The People and Place Directorate, which manages all major regeneration projects, constituted the main area of expenditure (£31.265m).  Prudential Borrowing provided the main source of financing (£26.995) followed by Grant and Other Contributions £16.068m). 

Actual Expenditure to 30 November 2018 was £24.637m.  This spending profile was in line with previous years.  However, the position would be kept under review and budgets would continue to be managed in accordance with forecasts.

Capital Programme 2019/20 to 2023/24

The Council had set out its capital programme for the 2019/20 to 2023/24 based on the principles of the Capital Strategy.  The Capital Programme and Capital Strategy had been influenced by the level of resources considered available.

Anticipated expenditure and matched funding for the period 2019/20 to 2023/24 totalled £262.198m.  This incorporated resources expected to be carried forward from 2018/19 and reflected the 2018/19 Month 8 monitoring position together with an enhanced projection of expenditure.  The detailed programme was set out at Annex C of Appendix 1.

A review of the capital programme had highlighted that there was already a full range of commitments for the period 2019/20 to 2023/24, but additional funding allocations totalling a net £46.919m had been added to support a number of schemes.  The capital programme included proposed expenditure for 2019/20 of £84.332m, with the largest area of expenditure being on schools, development and infrastructure projects within the People and Place Directorate. 

As in previous years, the major sources of financing for the capital programme were prudential borrowing and Government grants.

There would be a continued review of capital spending requirements.  It was, however, likely that the capital position would change prior to the start of 2019/20 and during the year as:

·                     There may be further Government funding allocations announced prior to the start of 2019/20.

·                     The outcome of specific grant bids would be announced during 2019/20.

·                     There may also be the new initiatives announced later in the financial year.

·                     There may also be the opportunity to bid for additional funding.

·                     The Council may identify other funding sources, which included capital receipts, to finance additional capital expenditure.

The overall capital programme position would be kept under review and any new information about funding allocations would be presented to members in future reports.

There had been consultation on the proposed Capital Strategy and Capital Programme for 2019/20 to 2023/2024 which included consideration by the Overview and Scrutiny Performance and Value for Money Select Committee on 24 January 2019 who commended the report to Cabinet.  Cabinet duly considered and approved the report on 11 February 2019 and commended the report to Council.

 

No members spoke on this item.

 

RESOLVED that:

1.         The Capital Strategy for 2019/20 to 2023/24 as detailed at Appendix 1 of the report and summarised at Section 2.1 of the report be approved.

2.         The Capital Programme for 2019/20 and indicative programmes for 2020/21 to 2023/24 as detailed at Annex C of Appendix 1 to the report and summarised at Sections 2.2 to 2.6 of the report be approved.

3.         The Flexible Use of Capital Receipts Strategy as presented at Annex D of Appendix 1 of the report be approved.

 

c)         Treasury Management Strategy Statement 2019/20

 

            Councillor Jabbar MOVED and Councillor Fielding SECONDED a report of the Director of Finance which presented the strategy for 2019/20 Treasury Management activities which included the Minimum Revenue Provision Policy Statement, the Annual Investment Strategy and Prudential Indicators together with linkages to the Capital Strategy.

            The Strategy for 2019/20 covered two main areas of Capital Issues and Treasury Management issues.  The report outlined the implications and key factors related to each of the Capital and Treasury Management issues and made recommendations with regard to the Treasury Management Strategy for 2019/20.  The Council was required to operate a balanced budget which broadly meant that cash raised during the year would meet cash expenditure.  Part of the Treasury Management Strategy was to ensure that the cash flow was adequately planned with cash being available when needed.

            The second main function of the Treasury Management Service was the funding of the Council’s capital plans.  These capital plans provided a guide to the borrowing need of the Council, essentially the longer term cash flow planning which ensured that the Council could meet its capital spending obligations.

            The Treasury Management Strategy 2019/20 was based on the current guidance which resulted from revisions to the Ministry of Housing, Communities Local Government (MHCLG) Investment Guidance , the MHCLG Minimum Revenue Provision (MRP) Guidance, the Chartered Institute of Public Finance and Accountancy (CIPFA) Revised 2017  Prudential Code and the CIPFA Treasury Management Code.  These required additional disclosures which were included in the report together within an alignment with the disclosures in the Capital Strategy report (itself prepared in accordance with the revised CIPFA Prudential and Treasury Management Codes).

            The report had been given consideration by the Overview and Scrutiny Performance and Value for Money on 24 January 2019 who commended the report to Cabinet.  Cabinet duly considered and approved the report on 11 February 2019 and commended the report to Council.

 

No members spoke on this item.

 

RESOLVED that:

 

1.         The Capital Expenditure Estimates as per paragraph 2.1.2 of the report be approved.

2.         The Minimum Revenue Provision Policy and method of calculation as outlined at Appendix 1 of the report be approved.

3.         The Capital Financing Requirement (CFR) Projections as per paragraph 2.2.4 of the report be approved.

4.         The projected treasury position as at 31/03/2019 as paragraph 2.3.4 of the report be approved.

5.         The Treasury Limits as par Section 2.4 of the report be approved.

6.         The Borrowing Strategy for 2019/20 as per Section 2.6 of the report be approved.

7.         The Annual Investment Strategy as per Section 2.10 of the report which included risk management and the creditworthiness policy at Section 2.11 of the report be approved.

8.         The level of investment in specified and non-specified investments detailed at Appendix 5 of the report be approved.

 

d)         Statement of the Chief Financial Officer on Reserves, Robustness of Estimates and Affordability and Prudence of Capital Investments

 

            Councillor Jabbar MOVED and Councillor Fielding SECONDED a report of the Director of Finance which sought agreement to the level of balances necessary to support the 2019/20 budget underpinned by the agreed policy on Earmarked Reserves, setting a properly balanced budget which included the financing of capital investments within the present investment proposals. 

            In accordance with Section 25 of the Local Government Act 2003, the Authority’s Chief Financial Officer was required to report on the robustness of the estimates made for the purpose of budget calculations and the adequacy of the proposed reserves.

            It was reported that Members could be assured that the Council continued to be well placed to meet the difficult financial challenges.  The Council had prepared a detailed revenue budget within a five year Medium Term Financial Strategy (MTFS), a five year capital programme and continued the closure of accounts within an appropriate timeframe which allowed early focus on the coming challenges and a robust financial transformation programme.

            Financial resilience depended in part on the Council maintaining an adequate level of reserves which were set out in the report.  The Audit Committee at its meeting held in July 2018 considered the policy on earmarked reserves and it was proposed to action the same review again in 2019/20 after the closure of the accounts for 2018/19.

            The robustness of the estimates and the adequacy of the reserves were satisfactory.  However, this was only the case provided that action was taken to ensure that the balances were set at the level as calculated in the report and that all budget options, or in year alternatives, were delivered as planned and monitored.

 

No members spoke on this item.

 

RESOLVED that:

 

1.         The General Balances currently calculated for 2019/20 at £14.250m and that any excess funding in general balances at the financial year-end was to be transferred to the fiscal mitigation reserve to support the financial resilience of the Council be approved.

2.         The initial estimate of General Balances to support the Medium Term Financial Strategy which were £14.840m for 2020/21 and £14.136m for the years 2021/22, 2022/23 and 2023/24 respectively be noted.

3.         The intended report to the Audit Committee on Earmarked Reserves to ensure this area was subject to appropriate scrutiny be noted.

4.         The actions necessary to secure a properly balanced budget as presented in paragraph 3.6 of the report be agreed.

5.         The actions necessary to ensure the prudence of the capital investments as noted in paragraph 4.4 of the report be agreed.

 

e)         Council Tax Reduction Scheme 2019/20

 

            Councillor Jabbar MOVED and Councillor Fielding SECONDED a report of the Director of Finance which presented the proposed Council Tax Reduction Scheme for 2019/20 for approval.

            It was reported that it was a requirement to have a Council Tax Reduction Scheme to support residents who qualified for assistance in the payment of Council Tax.  The Local Government Finance Act 2012 placed a requirement that each year a billing authority must consider whether to revise its Council Tax Reduction (CTR) Scheme or to replace it with another scheme.  Any change to the scheme must be agreed by Full Council in line with budget setting and no later than 10 March 2019.  The Council’s CTR scheme had been largely un-amended since April 2015 when the Council introduced the scheme that limited Council Tax to a maximum of 85% of Council Tax for a Band A property and removed second adult discount for those of working age.  A full examination of all the changes that might be considered for the 2019/20 scheme was explored by Cabinet in August 2018 which included potential changes to be considered following a wider understanding gained of the impact of Universal Credit (UC) full service on residents.  A public consultation was approved which focussed on areas of review that either maintained the status quo or introduced changes that would be beneficial to the claimant.  The consultation sought views on the maintenance of the maximum support afforded under the scheme of 85% of a Band A Council Tax property charge, a range of changes to the calculation of CTR for UC claimants and the alignment of some income disregards already in place in the national Housing Benefit scheme with the local CTR scheme.

            A public consultation was carried out over the period 12^th September 2018 to 24^th October 2018.  Overall respondents were in favour of the proposals with an average of 77% agreement across the four changes and 71% in favour of maintaining the current 85% scheme. 

            The report had been given consideration by the Overview and Scrutiny Performance and Value for Money on 24 January 2019 who commended the report to Cabinet.  Cabinet duly considered and approved the report on 11 February 2019 without amendment and commended the report to Council.

 

No members spoke on this report.

 

RESOLVED that proposed Council Tax Reduction Scheme changes for 2019/20 as follows be approved:

i.              To continue to limit support to a maximum of 85% of Council Tax of a Band A property.

ii.            Treat information received from the Department for Work and Pensions (DWP) about Universal Credit entitlement as a claim for Council Tax Reduction.

iii.           Apply earnings disregards for Universal Credit/Council Tax Reduction (UC/CTR) claims as set out below:

a.    Single Claimant       £5 per week

b.    Couple                       £10 per week

c.    Disabled/Carer         £20 per week

d.    Lone Parent              £25 per week

iv.           Incorporate housing costs into the UC/CTR calculation.

v.            Apply disregards for Bereavement Support Allowance and post graduate master’s degree loan and special support payments in the assessment of Council Tax Reduction.

 

f)          Revenue Budget 2019/20 and Medium Term Financial Strategy 2019/20 to 2023/24

 

            Councillor Fielding MOVED and Councillor Jabbar SECONDED a report of the Director of Finance which set out the proposals for the Council’s Revenue Budget for 2019/20 and the Medium Term Financial Strategy for 2019/20 to 2023/24.  The report advised of the key financial challenges and issues which would be faced by the Council over the forecast period and set out the Administration’s revenue budget proposals for 2019/20 together with updated budget gap estimates for the period 2020/21 to 2023/24.

            The report presented the national and regional policy landscape within which the Council operated.  The report summarised the UK’s economic outlook published alongside the Chancellor’s Autumn Budget Statement, key aspects of the Local Government finance system including the Greater Manchester 100% Rates Retention Pilot Scheme and information on the pooling of Business Rates for 2019/20, national and regional policies affecting Local Government including and local strategies and policies relevant to the Medium Term Financial Strategy.

            The report also highlighted policy announcements and implications arising from the Chancellor’s Autumn Budget Statement, the Provisional Local Government Finance Settlement and the final Local Government Finance Settlement published on 29 January 2019.

            The Settlement and associated announcements confirmed one-off grants announced in the Autumn Budget for a Winter Pressures Grant of £1.122m and Social Care Support Grant of £1.917m.  The Settlement also included £0.013m more grant resources than had been anticipated in the initial budget projections and a £0.978m share of a £180m surplus on the National Rates Levy Account which would be paid in 2018/19 but used to support the 2019/20 budget. 

            The Settlement confirmed referendum limits for general Council Tax increases.  The Government would permit rises of 3% per annum for 2019/20 and the Police element of the Mayoral precept could be increased by up to £24 for 2019/20 without triggering a referendum.  In addition, there was no limit on changes to the Mayoral General Precept.  The proposed 2019/20 budget reflected a continuation of Oldham Council Tax policy which allowed for a 1.99% general Council Tax increase, which was clearly below the maximum available.

            There had been no change to the arrangements for the charging of the Adult Social Care precept. In line with previously approved policy, the Council would charge a precept of 2% in 2019/20.

            The Council’s total Council tax increase for 2019/20 was proposed at 3.99% which was below the referendum limit of 5%. 

            Three consultation papers had been published alongside the 2019/20 Settlement.  The consultations were in regard to:

·         The 2019/20 Provisional Settlement

·         Reform of the Business Rate Retention System

·         A Review of Local Authorities’ relative needs and resources.

            The Council had responded to all consultations in line with the required deadlines.

            Section 7 of the report detailed key budget adjustments and expenditure pressures which underpinned the forecasts that provided the backdrop for the Council’s Medium Term Financial Strategy.

            The report also reflected the latest available forecasts for Government Grant income and locally generated income from Retained Business Rates and Council Tax. 

            Based on the latest estimates, the budget reduction requirement for 2019/20 had increased from the previously reported figure of £17.986m to £21.916m.  The increase was due to a range of changes to the estimates which were set out in detail at Section 11 of the report.

            Section 12 of the report detailed the Administration’s budget reduction proposals.  There were a total of 35 proposals which delivered savings of £7.829m in 2019/20.  If approved in full, these proposals further reduce the budget reduction requirement to £14.087m for 2019/20.  In order to remove the requirement for further spending reductions, the 2019/20 budget would be part financed by using the opportunities provided by the ability to use Capital Receipts to support spending on transformational projects up to a value of £3.000m and from an available Collection Fund Surplus of £2.269m.

            Section 13 of the report explained the approach to balancing the 2019/20 budget by using a number of specific and corporate reserves.

            It was noted that as the Government had only provided grant funding notifications for 2019/20, the MTFS estimates for 2020/21 to 2023/24 were based on the best information currently available and therefore must be considered indicative at this time.

            Other key sections in the report summarised the forecast reserves and balances position which supported the Council’s financial resilience, set out the Administration’s proposals related to Fees and Charges and detailed the Council’s Pay Policy Statement (as required by Sections 38 to 43 of the Localism Act 2011).

            On 24 January 2019, the Overview and Scrutiny Performance and Value For Money Select Committee had scrutinised the 2019/20 Budget Report and commended the report to Cabinet.  At the Cabinet meeting held on 11 February 2019, the Cabinet accepted the recommendations of the PVFM Select Committee and commended the 2019/20 Revenue Budget to Council.  At a further meeting of the PVFM Select Committee on 5 February 2019, consideration was given to the budget amendment put forward by the Main Opposition Party.  The PVFM Select Committee did not accept the budget amendments, however, it did recommend two actions for inclusion within the 2020/21 budget setting process.  Cabinet was content to make such recommendation to Council and the information was included at paragraph 19.35 of the report.

 

AMENDMENT

 

Councillor C. Gloster MOVED and Councillor Sykes SECONDED the Amendment to the budget as circulated and detailed in the Council Summons.  Councillor C. Gloster expressed his thanks to staff who assisted in the preparation of the report.

 

Councillors S. Bashforth, Shah, Jabbar, Chauhan, Mushtaq, Ahmad and Dean spoke in against the Amendment.

 

Councillors Roberts and Ur-Rehman spoke on the Amendment.

 

Councillors H. Gloster, Heffernan, Murphy and Hudson spoke in support of the Amendment.

 

Councillor C. Gloster exercised his right reply.

 

Councillor Fielding exercised his right of reply.  Councillor Fielding expressed his thanks to staff in Finance and the Executive Management Team for the support provided in the preparation of the Budget.

 

A recorded vote, in line with the regulations was then taken on the AMENDMENT as follows:

 

Councillor		Councillor
Ahmad	AGAINST	Hussain, F.	AGAINST
Akhtar	AGAINST	Jabbar	AGAINST
Alexander, A.	AGAINST	Jacques, E.	AGAINST
Alexander, G.	ABSENT	Jacques, P.	AGAINST
Ali	AGAINST	Judd	AGAINST
Azad	AGAINST	Larkin	ABSENT
Ball	AGAINST	Leach	AGAINST
Bashforth, M.	AGAINST	Malik	AGAINST
Bashforth, S.	AGAINST	McLaren	AGAINST
Briggs	AGAINST	Moores	AGAINST
Brownridge	AGAINST	Murphy	FOR
Byrne	FOR	Mushtaq	AGAINST
Chadderton	AGAINST	Phythian	AGAINST
Chauhan	AGAINST	Price	AGAINST
Cosgrove	AGAINST	Qumer	AGAINST
Curley	ABSENT	Rehman	ABSENT
Davis	AGAINST	Roberts	AGAINST
Dean	AGAINST	Salamat	AGAINST
Fielding	AGAINST	Shah	AGAINST
Garry	AGAINST	Sheldon	FOR
Gloster, C.	FOR	Shuttleworth	AGAINST
Gloster, H.	FOR	Stretton	AGAINST
Goodwin	AGAINST	Sykes	FOR
Haque	AGAINST	Taylor	AGAINST
Harkness	ABSENT	Toor	AGAINST
Harrison	AGAINST	Turner	ABSENT
Heffernan	FOR	Ur-Rehman	AGAINST
Hewitt	AGAINST	Williams	AGAINST
Hudson	FOR	Williamson	FOR
Hussain, A.	AGAINST	Iqbal	AGAINST

 

On a recorded VOTE being taken, 9 VOTES were cast in FAVOUR of the AMENDMENT with 45 cast against and 0 ABSTENTIONS.  The AMENDMENT was therefore LOST.

 

The following Councillors then spoke on the ORIGINAL MOTION.

 

Councillors Chadderton, Mushtaq, P. Jacques, Leach, Williams, and Chauhan spoke in support of the Original Motion.

 

Councillors Murphy and Heffernan spoke against the Original Motion.

 

Councillor Fielding exercised his right of reply.

 

Councillor Murphy made a point of personal explanation related to the District Executive funding allocations.

 

A recorded vote, in line with the regulations was then taken on the ORIGINAL MOTION as follows:

 

Councillor		Councillor
Ahmad	FOR	Hussain, F.	FOR
Akhtar	FOR	Jabbar	FOR
Alexander, A.	FOR	Jacques, E.	FOR
Alexander, G.	ABSENT	Jacques, P.	FOR
Ali	FOR	Judd	FOR
Azad	FOR	Larkin	ABSENT
Ball	FOR	Leach	FOR
Bashforth, M.	FOR	Malik	FOR
Bashforth, S.	FOR	McLaren	FOR
Briggs	FOR	Moores	FOR
Brownridge	FOR	Murphy	ABSTENTION
Byrne	AGAINST	Mushtaq	FOR
Chadderton	FOR	Phythian	FOR
Chauhan	ABSENT	Price	FOR
Cosgrove	FOR	Qumer	FOR
Curley	ABSENT	Rehman	ABSENT
Davis	FOR	Roberts	FOR
Dean	FOR	Salamat	FOR
Fielding	FOR	Shah	FOR
Garry	FOR	Sheldon	AGAINST
Gloster, C.	ABSTENTION	Shuttleworth	FOR
Gloster, H.	ABSTENTION	Stretton	FOR
Goodwin	FOR	Sykes	ABSTENTION
Haque	FOR	Taylor	FOR
Harkness	ABSENT	Toor	FOR
Harrison	FOR	Turner	ABSENT
Heffernan	ABSTENTION	Ur-Rehman	FOR
Hewitt	FOR	Williams	FOR
Hudson	AGAINST	Williamson	ABSTENTION
Hussain, A.	FOR	Iqbal	FOR

 

On a recorded VOTE being taken, 44 VOTES were cast in FAVOUR of the ORIGINAL MOTION with 3 cast against and 6 ABSTENTIONS.  The ORIGINAL MOTION was therefore CARRIED.

 

RESOLVED that:

 

1.         The national and regional policy landscape determining the context in which the Council was setting its revenue budget for 2019/20 and Medium Term Financial Strategy to 2023/24 be approved.

2.         The impact of Oldham Council Policies and Strategies on the Council’s budget setting process and the development of its Medium Term Financial Strategy be approved.

3.         The financial forecasts for 2019/20 to 2023/24 having regard to the Local Government Finance Settlement and associated funding announcements be approved.

4.         The key issues to be addressed in continuing to respond to the financial challenges facing the Council be approved.

5.         The 2019/20 Budget Reduction Proposals at a value of £7.829m be approved.

6.         The proposed use of £4.928m of reserves for specific purposes and £3.890m of corporate reserves to balance the 2019/20 budget be approved.

7.         The proposed fees and charges scheduled included at Appendix 4 to the report be approved.

8.         The Pay Policy Statement included at Appendix 5 to the report be approved.

9.         A proposed Council Tax increase of 3.99% for Oldham Council services resulting in the Band D charges set out at Paragraph 17.3 and Table 22 of the report and in detail at Appendix 9 to the report be approved.

10.       A proposed increase to the empty property premium from 50% to the maximum 100% allowed from 1 April 2019 be approved.

11.       The proposal to draw on the Collection Fund for major preceptors of £107.695m for Borough Wide services of which £92.090m was for Council services be approved.

12.       The proposed expenditure budget for 2019/20 for the Council of £224.112m be approved.

13.       Revised estimated budget reduction targets of £22.871m for 2020/21, £10.889m for 2021/22, ££6.859m for 2022/23 and £4.160m for 2023/24.

 

The Mayor then asked Council if they agreed to the resolutions as detailed in the Summons and, in accordance with the regulations, a recorded vote was taken on resolutions 1, 2, 3 and 5 as follows:

 

Resolutions 1 and 2 related to the Council Tax Base for the Financial Year 2019/20 as approved by the Cabinet on 17^th December 2018 and the Council Tax Requirement for the Council’s own purposes for 2019/20

 

Members who spoke on this item.

 

A recorded vote, in line with the regulations, was then taken on the Resolutions as follows:

 

Councillor		Councillor
Ahmad	FOR	Hussain, F.	FOR
Akhtar	FOR	Jabbar	FOR
Alexander, A.	FOR	Jacques, E.	FOR
Alexander, G.	ABSENT	Jacques, P.	FOR
Ali	FOR	Judd	FOR
Azad	FOR	Larkin	ABSENT
Ball	FOR	Leach	FOR
Bashforth, M.	FOR	Malik	FOR
Bashforth, S.	FOR	McLaren	FOR
Briggs	FOR	Moores	FOR
Brownridge	FOR	Murphy	FOR
Byrne	FOR	Mushtaq	FOR
Chadderton	FOR	Phythian	FOR
Chauhan	FOR	Price	FOR
Cosgrove	FOR	Qumer	FOR
Curley	ABSENT	Rehman	ABSENT
Davis	FOR	Roberts	FOR
Dean	FOR	Salamat	FOR
Fielding	FOR	Shah	FOR
Garry	FOR	Sheldon	FOR
Gloster, C.	FOR	Shuttleworth	FOR
Gloster, H.	FOR	Stretton	FOR
Goodwin	FOR	Sykes	FOR
Haque	FOR	Taylor	FOR
Harkness	ABSENT	Toor	FOR
Harrison	FOR	Turner	ABSENT
Heffernan	FOR	Ur-Rehman	FOR
Hewitt	FOR	Williams	FOR
Hudson	FOR	Williamson	FOR
Hussain, A.	FOR	Iqbal	FOR

 

On a recorded VOTE being taken, the RESOLUTION was CARRIED UNANIMOUSLY.

 

RESOLVED that:

 

1.         It be noted that on 17 December 2018, the following amounts were approved by Cabinet as the Council’s Tax Base for the financial year 2019/20 be approved:

a)         56,693 for the whole Council [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)].

b)         8,627 for dwellings in the Saddleworth Parish area to which a Parish precept related.

c)         5,438 for dwellings in the Shaw and Crompton Parish area to which a Parish precept related.

2.         The Council Tax Requirement for the Council’s own purposes for 2019/20 (excluding Parish Precepts) as being £92,089,841 be approved.

 

Resolution 3 related to the amounts calculated by the Council for the year 2019/20 in accordance with Sections 31A to 36 of the Local Government Finance Act 1992

 

No members spoke on the item.

 

A recorded vote, in line with the regulations, was then taken on the RESOLUTION as follows:

 

Councillor		Councillor
Ahmad	FOR	Hussain, F.	FOR
Akhtar	FOR	Jabbar	FOR
Alexander, A.	FOR	Jacques, E.	FOR
Alexander, G.	ABSENT	Jacques, P.	FOR
Ali	FOR	Judd	FOR
Azad	FOR	Larkin	ABSENT
Ball	FOR	Leach	FOR
Bashforth, M.	FOR	Malik	FOR
Bashforth, S.	FOR	McLaren	FOR
Briggs	FOR	Moores	FOR
Brownridge	FOR	Murphy	FOR
Byrne	FOR	Mushtaq	FOR
Chadderton	FOR	Phythian	FOR
Chauhan	FOR	Price	FOR
Cosgrove	FOR	Qumer	FOR
Curley	ABSENT	Rehman	ABSENT
Davis	FOR	Roberts	FOR
Dean	FOR	Salamat	FOR
Fielding	FOR	Shah	FOR
Garry	FOR	Sheldon	FOR
Gloster, C.	FOR	Shuttleworth	FOR
Gloster, H.	FOR	Stretton	FOR
Goodwin	FOR	Sykes	FOR
Haque	FOR	Taylor	FOR
Harkness	ABSENT	Toor	FOR
Harrison	FOR	Turner	ABSENT
Heffernan	FOR	Ur-Rehman	FOR
Hewitt	FOR	Williams	FOR
Hudson	FOR	Williamson	FOR
Hussain, A.	FOR	Iqbal	FOR

 

On a recorded VOTE being taken, the RESOLUTION was CARRIED UNANIMOUSLY.

 

RESOLVED that the following amounts calculated by the Council for 2019/20 in accordance with Sections 31A to 36 of the Local Government Finance Act 1992 be approved:

 

a)	£580,552,436	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account any Precepts for the Saddleworth and Shaw & Crompton Parish areas.
b)	£488,184,981	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
c)	£92,367,455	Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its Council Tax Requirement for the year (Item R in the formula in Section 31B of the Act).
d)	£1,629.26	Being the amount at 3(c) above, all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish Precepts).
e)	£277,614	Being the aggregate amount of all special items referred to in Section 34(1) of the Act, being the Saddleworth and Shaw and Crompton Parish precepts.
f)	£1,624.36	Being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by the amount by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no special item related.
g)	£1,646.12	Saddleworth Parish Area Being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items related to dwellings in those parts of the Council’s area mentioned at 3(e) above divided by the amount at 1(b) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amounts in those parts of its area to which one or more special items related.
h)	£1,640.89	Shaw & Crompton Parish Area Being the amounts given by adding to the amount at 3(f) above the amounts of the special item or items related to dwellings in those parts of the Council’s area mentioned at 3(e) above divided by the amount at 1(c) above, calculated by the Council, in accordance with Section 34(3) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which one or more special items related.

 

Resolution 4 – Relating to Mayoral Police and Crime Commissioner Precept and the Mayor General Precept (including Fire Services)

 

No members spoke on this item.

 

On being put to the VOTE, the RESOLUTION was CARRIED UNANIMOUSLY.

 

RESOLVED that for the year 2019/20 the Mayoral Police and Crime Commissioner Precept and the Mayoral General Precept (including Fire Services) for Greater Manchester issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each category of dwellings in the Council’s area as indicated in the summons be noted.

 

Resolution 5 – Relating to the Setting of the Council Tax for 2019/20

 

No members spoke on this item.

 

A recorded vote, in line with the regulations, was then taken on the RESOLUTION as follows:

 

Councillor		Councillor
Ahmad	FOR	Hussain, F.	FOR
Akhtar	FOR	Jabbar	FOR
Alexander, A.	FOR	Jacques, E.	FOR
Alexander, G.	ABSENT	Jacques, P.	FOR
Ali	FOR	Judd	FOR
Azad	FOR	Larkin	ABSENT
Ball	FOR	Leach	FOR
Bashforth, M.	FOR	Malik	FOR
Bashforth, S.	FOR	McLaren	FOR
Briggs	FOR	Moores	FOR
Brownridge	FOR	Murphy	FOR
Byrne	FOR	Mushtaq	FOR
Chadderton	FOR	Phythian	FOR
Chauhan	FOR	Price	FOR
Cosgrove	FOR	Qumer	FOR
Curley	ABSENT	Rehman	ABSENT
Davis	FOR	Roberts	FOR
Dean	FOR	Salamat	FOR
Fielding	FOR	Shah	FOR
Garry	ABSENT	Sheldon	FOR
Gloster, C.	FOR	Shuttleworth	FOR
Gloster, H.	FOR	Stretton	FOR
Goodwin	FOR	Sykes	FOR
Haque	FOR	Taylor	FOR
Harkness	ABSENT	Toor	FOR
Harrison	FOR	Turner	ABSENT
Heffernan	FOR	Ur-Rehman	FOR
Hewitt	FOR	Williams	FOR
Hudson	FOR	Williamson	FOR
Hussain, A.	FOR	Iqbal	FOR

 

On a recorded VOTE being taken, the RESOLUTION was CARRIED UNANIMOUSLY.

 

RESOLVED that the Council, in accordance with Sections 30 to 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2019/20 for each part of its area and for each of the categories of dwellings.

 

Authority/Parish	Council Tax Bands (£)
	A	B	C	D	E	F	G	H
Oldham Council	1,082.90	1,263.39	1,443.87	1,624.36	1,985.32	2,346.29	2,707.26	3,248.72
Mayoral Police and Crime Commissioner Precept	132.20	154.23	176.27	198.30	242.37	286.43	330.50	396.60
Mayoral General Precept (including Fire Services)	51.29	59.84	68.39	76.95	94.05	111.15	128.24	153.90
Saddleworth Parish Precept	14.50	16.92	19.34	21.76	26.59	31.43	36.26	43.52
Shaw and Crompton Parish Precept	11.02	12.85	14.69	16.53	20.20	23.87	27.55	33.06

 

 

Authority/Parish	Council Tax Bands (£)
	A	B	C	D	E	F	G	H
Saddleworth Parish Area	1,280.89	1,494.38	1,707.87	1,921.37	2,348.33	2,775.30	3,202.26	3,842.74
Shaw & Crompton Parish Area	1,277.41	1,490.31	1,703.22	1,916.14	2,341.94	2,767.74	3,193.55	3,832.28
All other parts of the Council’s area	1,266.39	1,477.46	1,688.53	1,899.61	2,321.74	2,743.87	3,166.00	3,799.22